RailTel Corporation of India Limited conducted its initial public offering (IPO) from February 16 to February 18, 2021. The IPO was worth ₹819.24 crores, involving an offer for sale of 8.72 crore shares at a price range of ₹93 to ₹94 per share. Retail investors could apply for a minimum of 155 shares, and the shares got listed on BSE and NSE on February 26, 2021. This comprehensive guide will delve into the details of the RailTel IPO GMP (Grey Market Premium), exploring its key aspects in an easy-to-understand manner.
What is RailTel IPO GMP?
RailTel Corporation of India Limited IPO Overview
- Issue Size: ₹819.24 crores.
- Shares Offered: 8.72 crore shares.
- Price Band: ₹93 to ₹94 per share.
- Minimum Lot Size: 155 shares.
- Listing Date: February 26, 2021.
Detailed Exploration of RailTel IPO GMP
What is RailTel IPO?
RailTel Corporation of India Limited, a public sector business unit, conducted its IPO entirely as an offer for sale, where existing shareholders sold their shares to the public. This means the company did not issue new shares, but rather, the current owners offloaded their stakes.
When Did the RailTel IPO Take Place?
The bidding for the RailTel IPO started on February 16, 2021, and ended on February 18, 2021. The allotment was finalized on February 23, 2021, and the shares were listed on February 26, 2021. This timeline is crucial for investors to understand the sequence of events.
Where Were the Shares Listed Of RailTel IPO GMP?
The shares of RailTel got listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on February 26, 2021. Listing on these major exchanges provided investors with easy access to trade the shares.
Why Did RailTel Go Public?
RailTel aimed to raise capital by allowing public participation in its ownership. This public offering helped the company in its growth strategy and provided opportunities for investors to become part-owners of a government enterprise.
How Much Could Retail Investors Invest?
Retail investors could apply for a minimum of 155 shares, requiring an investment of ₹14,570. This accessibility allowed many small investors to participate in the RailTel IPO.
Who Managed the RailTel IPO?
ICICI Securities Limited, IDBI Capital Market Services Limited, and SBI Capital Markets Limited were the book running lead managers. Kfin Technologies Limited acted as the registrar for the issue, ensuring smooth processing of the applications and allotment.
What Was the IPO Timeline?
- IPO Open Date: February 16, 2021
- IPO Close Date: February 18, 2021
- Allotment Date: February 23, 2021
- Listing Date: February 26, 2021
RailTel IPO GMP Details
How Many Shares Were Offered to Different Categories?
- Qualified Institutional Buyers (QIB): 28.38% of the shares
- High Net Worth Individuals (NII): 21.24% of the shares
- Retail Investors: 49.56% of the shares
- Employees: 0.82% of the shares
What About the Grey Market Premium (GMP)?
The Grey Market Premium (GMP) for RailTel IPO was ₹101. This indicates the extra amount that investors were willing to pay in the unofficial market, reflecting the demand and potential profit expectations. The expected profit/loss based on GMP was 10.64%, which means investors anticipated a significant return on their investment.
Promoter Holding
The President of India, acting through the Ministry of Railways, is the promoter of RailTel. This strong backing provides confidence to investors regarding the company’s stability and governance.
Key Highlights and Takeaways On RailTel IPO GMP
- Issue Size: ₹819.24 crores
- Shares Offered: 8.72 crore
- Price Band: ₹93 to ₹94
- Minimum Investment: ₹14,570
- Listing Date: February 26, 2021
- GMP: ₹101
- Expected Profit/Loss: 10.64%
Investment Insights and Recommendations On RailTel IPO GMP
Investing in IPOs involves risks, and it is essential to conduct thorough research and consult financial advisors before making any investment decisions. RailTel’s IPO aimed to enhance its growth and provide opportunities for investors. Considering the RailTel IPO GMP of ₹101 and the anticipated profit margin, it presented an attractive investment opportunity for many.
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Final Thoughts On RailTel IPO GMP
RailTel IPO GMP provided a unique opportunity for investors to participate in a government-backed enterprise. With an attractive GMP and a solid promoter, it garnered significant interest from various investor categories. Remember to always do your due diligence and seek professional advice when investing in the stock market. Happy investing! 🚂📈
